OpenAI Mulling Price Cuts As Rivalry With Anthropic Intensifies: Report

The rivalry between OpenAI and Anthropic may lead to the ChatGPT maker slashing subscription prices. The reason? To woo customers.

OpenAI, which filed confidential papers for its initial public offering (IPO) recently, is considering significant cuts to what it charges for tokens or the gauge artificial intelligence companies use to bill for their offerings, people familiar with the matter told Wall Street Journal

The move would be in response to similar reductions that the Sam Altman-led firm expects at Anthropic, insiders told the outlet.

Altman recently admitted that high prices for AI usage had become a “huge issue.”

“I think we'll have a lot of ways we can help people get more value for less spend,” he explained.

OpenAI currently offers tiered subscriptions of $8, $20 and $100 and above per month for access to its GPT-5.5 models, CNBC reported.

In contrast, Anthropic charges $17 each month for an annual subscription to Claude Pro. Users have to shell out $100 and above per month for access to Claude Max.

Drastic price reductions could potentially lower the profit margins of both AI giants, which already lose billions due to the enormous cost for computing resources needed for artificial intelligence companies to carry out tasks.

Both OpenAI and Anthropic are vying to launch their public issues soon. The two AI giants compete for users, investors and corporate customers. In recent months, the companies have been moving towards $1 trillion valuations.

Anthropic closed its latest funding round last month at a valuation of  $965 billion, moving past OpenAI's market valuation of $852 billion.

Sam Altman told staff in a message earlier this week that he expected OpenAI to ‌go public "within the next year," Reuters reported, citing The Information. No exact timeline was shared.

Altman said that the AI startup is preparing to introduce a tender offer "very soon" at the share price of $687.69.

For both Anthropic and OpenAI, the timing of their IPO matters. The company that lists later is unlikely to perform as well as the one that goes public first.

In terms of funding as well, the earlier entrant may get the maximum money. With SpaceX already launching its IPO this week, pressure is high on both Anthropic and OpenAI to be the first one past the gate.

While the race for customers and public listing is a factor in their decisions, a price war could lead to more troubles for the AI giants when it comes to profiting from their models.